CoinDCX Engineer Arrested in $44M Hack Probe

An engineer working at one of India’s largest crypto exchanges, CoinDCX, has been arrested in connection with a major hack that wiped off roughly $44 million from the company’s systems. 

The incident, which took place on July 19, is now under active investigation by Bengaluru City police. It came after a formal complaint and internal audit by CoinDCX’s parent firm, Neblio Technologies. The arrested individual, Rahul Agarwal, is a 30-year-old software engineer. He has reportedly been with CoinDCX for over two years. 

Agarwal was taken into custody after investigators traced the breach to compromised credentials that hackers used to infiltrate the exchange’s backend systems. According to The Times of India, hackers exploited Agarwal’s work-issued laptop. Reports suggest that he used the same device for freelance jobs, which was against CoinDCX’s policies. 

CoinDCX, in a statement shared on social media, did not confirm the arrest but said its initial findings suggest a “sophisticated social engineering” effort that targeted internal infrastructure.

Security Questions Linger as Investigations Deepen

While Agarwal has denied direct involvement in the $44 million exploit, he did admit during questioning that he had been juggling freelance projects alongside his full-time role. That detail is now at the center of the investigation.

The company has insisted that no customer funds were affected. According to CEO Sumit Gupta, the compromised funds were part of internal liquidity operations. This means they were the exchange’s funds, and not user deposits. Gupta also called for less speculation while law enforcement works to untangle the full scope of the event.

As of now, police are still investigating the full breach. Whether Agarwal was a victim, a negligent insider, or an active participant remains to be seen.

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